Subjects:

Banking and Finance

Contents:

1. The Elements of Bank Financial Supervision

Why are banks supervised?

National and international institutional structures of bank financial regulation

Bank regulation and securities regulation

2. Lending and Credit Risk

Capital adequacy requirements

- lending & the risk classification of borrowers

- the standardised approach to measuring credit risk

- internal ratings-based approach to measuring credit risk

Project & asset finance

Collateral, netting and credit risk mitigation

Equity investment by banks

3. Investment Banking

Securities trading

Hedging

Financial structuring

- Derivatives

- Repackagings

- Securitisation

4. Retail Banking

Mortgages

Small corporate exposures

Retail receivables and financing

5. General Restrictions on Bank activities

Liquidity regulation

Large exposures regulation

Operational risk

6. Bank Group Supervision

Nature and structure of bank capital

Bank groups - structure and supervision

Cross-border and international supervision of banks and the conflict of regulation

Financial capital regulation drives almost every aspect of the financial markets, from the structures of financial groups and the way they raise capital to the development of investment structures and financial engineering such as derivatives, securitisations, structured finance, credit derivatives, repos and stock lending.

Capital regulation is a little studied area of law. This book provides an introduction to the structure of bank financial regulation for financial lawyers and other non-statisticians interested in the regulatory drivers which shape modern financial transactions and techniques. Although the regulations are based on complex statistical models, the legal and regulatory principles which underlie these regulations are capable of being articulated without formulae and in a structured fashion.

This aspect of regulation is currently in a state of transition, due to the international implementation of the Basel II Accord. Basel II introduces a wholly new structure for bank financial regulation, and requires banks worldwide to re-examine their structures, activities and business models. It will result in both substantial change in regulatory structures and a significant increase in the complexity of those structures.

The focus of the work is on the general principles set out in the Basel II and on the implementation of those principles in the EU through the Capital Requirements Directive. It should therefore be of direct relevance to readers in all EU and most non-EU significant financial jurisdictions. Providing a clear and comprehensive introduction to the regulatory drivers shaping financial transactions , this work is an accessible guide for lawyers and bankers.